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Windfall tax ‘announced in haste’ says solar industry

Solar Energy UK
12 October 2022 

According to Solar Energy UK, the government’s proposed revenue cap on renewable power generation gives “another very poor signal” to investors.[1] The plan, put forward today in the Energy Prices Bill, comes after it was revealed that Environment Secretary Ranil Jayawardena is seeking to make reforms that could virtually end the rollout of solar farms across England. [2]    

“The UK solar industry is concerned that a windfall tax on revenue from existing renewable generators has been announced in haste, whilst many of the details are still to be worked out, particularly for small generators who have been excluded from ministerial discussions so far. This gives another very poor signal to international investors in renewables in the UK, on the back of speculation of restrictive planning rules for solar farms being pursued by Defra,” said Chris Hewett, Chief Executive of Solar Energy UK.  

“The whole renewable industry is ready and willing to work on medium-term solutions to separate the low-cost renewable power market from the high-cost gas power market. This would be in the best interests of consumers and generators,” he added. 

[1] Government introduces new Energy Prices Bill to ensure vital support gets to British consumers this winter 

[2] Truss plan to block solar farms is deeply unpopular – so why is she so keen? 

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Editors’ notes: 
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